Research and Key Discoveries

In September 1999, Hugh Massie with his team in Sydney, Australia began the process of researching and discovering what makes up a person's unique Financial DNA - their financial personality. While risk tolerance is vital information to financial planning, we knew that there was much more to a person's financial personality than simply their risk profile.  Further our experience was that many risk profiles and personality tests only show situational learned behaviors and cannot be relied upon for long term life and financial decision-making.

Therefore our goal is to provide a highly predictable process which operates as the "swiss watch" of financial personality profiles. We know that many of the drivers of a person's Financial DNA sit below the surface and cannot be easily observed. Hence, the Financial DNA Discovery Process we have researched and designed measures objectively and comprehensively the whole of a person's financial personality with very robust and reliable outcomes.  Further, the output is presented in an understandable and yet insightful format so that it is highly educational for investors and advisors from all over the world.

The International Center for Behavioral Research was formed in 2009. This is a dedicated research institute with a highly experienced team of psychologists, behavioral specialists experienced in psychometric profile design and businessmen experienced in behavioral assessment. The Institute is now performing further research into the behaviors that make up a person's Financial DNA. Other behavioral research is also being performed for related areas such as Communication DNA, Business DNA, Family DNA, Entrepreneur DNA, Philanthropy DNA and CareerLife DNA).

The Financial DNA behavioral assessment engine has been validated with research performed by the Institute and a team of consultants who are psychologists from Georgia Tech University in Atlanta, GA.

Summary of Our Unique Research Findings

1. Natural DNA Behavior is Predictable

Our research with test and re-test procedures has shown that a person's natural DNA (default) behavior continuously repeats itself throughout a person's life. This is the behavior that is programmed into a person from birth to around the age of three. Very often it sits below the surface and is not seen because it is masked by learned behaviors.

2. Powerful Impact of Natural Behavior on Financial Decision-Making

The natural behavior has a significant influence on a person's true life motivations and attitudes in a wide range of areas from which many financial decisions are regularly made. These behaviors are most often revealed when a person is under pressure which is often triggered by money and relationships.

3. Applicability of Natural Behavior Worldwide

The natural behavior which is revealed using our process is equally applicable to a very broad range of people from different cultures and backgrounds. Our natural behavior model equally applies in the United States, Australia, Canada, Europe, India, Asia and South America.

4. Measurement of Differences Between Natural and Learned Behaviors

Our research has enabled us to measure the differences  between a person's natural behavior and their learned financial personality preferences in given situations and then how they integrate to form your unique Financial DNA.  Research shows that significant financial events during a person's childhood up to the age of 15 years will have significant lasting impacts on their financial attitudes regardless of the natural behavior. An example is in the area of risk taking where a person says that they do not currently want to take risk (learned behavior) because they have seen a parent go bankrupt but naturally they are a risk taker. This is key information in knowing how to guide a person in making financial decisions.

5. Separate Measurement of Risk Taking Propensity and Risk Tolerance

Our research shows that a person's risk taking propensity and risk tolerance are different behaviors in the context of a person's risk profile. These are separately measured areas of behavior. For instance, over 20% of  people have a greater propensity to take risks than their ability to live with the consequences of taking them (ie the tolerance).

6. Expectations of Financial Guarantees

More than 20% of investors have a high expectation of their financial advisor to guarantee their financial results.

7. Influence of Learning Style on Financial Decisions

Our research shows that a person's learning style has a significant impact on how people perceive the risk profile of a product or transaction. We have learned to measure whether a person is "left brained" or "right brained". Therefore, the method of communication with people and the re-framing of information based on their inherent behavioral style is critical.

8. Setting Financial Goals - the Pioneering Factor

A landmark area of our research is the measurement of the Pioneering factor which is related to a person's drive to set and pursue goals. Research shows that there are 3 different behaviors which influence goal setting and how goals are pursued. These behaviors are:

• Iniaiting
• Competitive
• Determined

9. Trust - the Trust Factor

Research shows that people have a natural propensity to trust and others are naturally skeptical. There are 4 different behaviors which demonstrate trust:

• Delegation
• Open
• Approachable
• Relaxed

10. Delegation to Advisors

Research shows that people whose behavioral style is higher on control are less likely to delegate their financial management to a financial advisor.

11. Spenders

We have learned that the more naturally social and spontaneous orientated people are likely to be higher spenders and also likely to carry more debt.


Financial DNA Discovery Overview